Since bank account is a personal account, it can have debit balance or credit balance, when the total of receipts side of bank column is greater than the total of payment side, the difference (i.e., balance) is called ‘Debit balance’ (i.e., Bank balance). This balance is shown on the payment side as ‘By balance carried forward’.
When the total of payments side of bank column is greater than the total of receipts side, the difference (i.e., balance) is called ‘Credit balance’ (i.e., Bank overdraft). This balance is shown on the debit side of Cash book (receipts side) under bank column as ‘To balance carried forward’.
